Micron Forecasts $23B Q2 Revenue and 77% Margin on DRAM Price Surge
Analysts forecast Micron's Q2 revenue to reach $23 billion with a 77% gross margin, driven by a potential 100% surge in DRAM contract prices in Q1 and a 30% quarter-on-quarter increase in Q2. The company has secured an HBM4 order for a 10Gbps variant, while cloud providers extend inventory to four-six months and smartphone firms build seven weeks of memory supply, but overall capacity remains constrained through the second half of 2027.
1. Forecast and Pricing Dynamics
Analysts expect Micron to report fiscal Q2 revenue of about $23 billion with a 77% gross margin, underpinned by projected DRAM contract price increases of 100% in Q1 and 30% quarter-on-quarter in Q2 as market asking prices hit 50% to 60%.
2. Supply-Demand Trends and Inventory Builds
Cloud service providers have extended memory inventories to four-six months and smartphone manufacturers to roughly seven weeks—up from two months and five weeks respectively—yet DRAM supply remains tight despite capacity ramps at Micron, SK Hynix and Samsung, with shortages forecast into the second half of 2027 driven by AI workload growth.
3. HBM4 Order and Technology Update
Micron secured an HBM4 order for a 10Gbps version, with a small production pilot scheduled to begin in March, positioning the company to meet rising high-bandwidth memory demand from AI and high-performance computing applications.